What is salary restructuring?

Salary restructuring means changing the split of your CTC between basic salary, HRA, special allowance, and other components to minimise income tax. A higher HRA with adequate rent paid can significantly reduce taxable income under the old regime.

Can I ask my employer to restructure my salary?

Yes. Many employers allow employees to choose their salary structure within the total CTC. HR or payroll teams can help. The restructuring must be done at the start of the financial year or when joining.

Does salary restructuring work in the new tax regime?

No. HRA exemption and most allowances are not available in the new tax regime. Salary restructuring is only beneficial if you choose the old tax regime.

What is the optimal basic salary percentage?

There is no single answer — it depends on your CTC, city, and rent paid. Generally, a basic salary of 40–50% of CTC with HRA of 40–50% of basic works well for metro city employees who pay significant rent.

Free Salary Restructuring Calculator — Optimise CTC to Save Tax | RushTax

How it works

Enter your CTC → we test 6 different salary structures → find the one with lowest tax → show you the saving.

Key levers

• Basic salary % of CTC
• HRA % of CTC
• Metro vs non-metro city
• Old vs new regime choice

Old regime only

Salary restructuring benefits apply only under the old tax regime. New regime doesn't allow HRA or most allowance exemptions.

Salary restructuring calculations treat your full CTC as gross salary and, unless you enter your actual rent, assume rent equal to 30% of CTC; they also assume you maximise 80C, 80D, and NPS deductions. Actual savings depend on your specific situation. Salary restructuring requires your employer's agreement. RushTax is a freelance consulting service — not a CA firm.

Frequently Asked Questions

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Salary Restructuring Calculator — Optimise Your CTC

Frequently Asked Questions

Ready to file?

Salary Restructuring Calculator — Optimise Your CTC

Frequently Asked Questions

Ready to file?